AVADA Group Limited FY24 Trading Update

AVADA Group Limited (ASX: $AVD) has revised its FY24 underlying EBITDA guidance downwards to be between $14.5m and $15.5m, compared to $16.1m for FY23. The revision comes as a result of negative external factors including project cancellations, delays, union activity, and unstable weather. The board is also considering potential impairment implications and has indicated that a dividend for FY24 is unlikely.

Executive Commentary

I would like to thank Paul for his hard work and particularly for his contribution to the successful IPO of AVADA. We wish him well for his future endeavors.

Summary

AVADA Group Limited has adjusted its FY24 underlying EBITDA guidance downwards due to negative external factors impacting business performance. The board is evaluating potential impairment implications and has indicated that a dividend for FY24 is unlikely. The Group is undertaking a comprehensive operational review and implementing structural changes to support improved operational performance. Despite short-term challenges, the Group remains confident in the industry's favorable demand fundamentals driving ongoing earnings growth in FY25, supported by a robust long-term pipeline of civil work projects.